Marriage is one of the most important days of our lives. Everybody wants to keep it perfect, pristine and orderly right from the wedding trousseau to the food on the guests’ plate. But, Indian weddings are extravagant and can be cash-demanding. Hence, most people take marriage loan, a type of personal loan. People seek financial assistance to keep the wedding as planned. But, here are a few things that you need to keep in mind while applying for a marriage loan.
Pick the Right Creditor
There are scores of creditors who would lend reasonable personal credit. However, each of them has different eligibility criteria, documentation requirements, and processing fees. If you are far too busy to step outside and wait in queues, you can even opt for online creditors. The entire process of availing loans is online.All you need is the supporting documents and fulfill the eligibility criteria. Remember that each creditor has different terms and conditions. You need to make sure that you have done a thorough research on the features provided by each one of them and then proceed with the application of the loan.
The most important aspect that you need to focus on is the interest rate of the credit. Make sure you are getting a reasonable credit limit with competitive interest rates. If you have a bad credit score, you may have to provide collateral against the loan amount or deal with high-interest rates and low credit limit. You can make use of the personal loan EMI calculator to estimate the total amount payable each month and at the end of the loan tenure. This keeps you informed of all the possible finance expenses and plan finances well in advance.
Long tenure periods with low EMI seem great at the moment, but the recurring nature of the EMI can put a financial strain later on. It is ideal to keep the loan tenure short. The reason is that the borrowers actually end up paying more when they seek loans for a longer period. Short tenure loans are easy to pay off and the interest that you pay on the principal amount is relatively low.
Don’t Apply at Multiple Places
To get the best deals, you must keep your credit scores in check. If you are applying at multiple places, you would end up hurting your credit score. The borrowers who apply at multiple places are often termed as ‘credit hungry’. While you must assess all the possible options available, don’t be quick to apply to all creditors.
Know All Your Fees
There are multiple miscellaneous fees that one often ignores. These miscellaneous expenses include the processing fee, stamp duty, taxes, pre-payment fees (if applicable) and so on. These expenses vary from one creditor to another. Some creditors may charge extremely high and you must be aware of the other options available to you for making a well-informed decision.
Marriage loan is like any other personal loan. To avoid any issues at a later stage, you must be very careful while making a decision at the time of seeking a loan.